"Dunn represented, marketed and successfully sold our business. My partner and I interviewed a number of investment bankers prior to the transaction and chose Kevin because of his broad industry experience, professional reputation and ability to get deals done. Kevin and his team learned everything about our business and put together a comprehensive offering memorandum which generated tremendous interest from both private equity and strategic buyers. Kevin conducted an efficient auction of our company and was able to "walk-up" the ultimate sale price substantially. We never second guessed our decision to hire Kevin and I strongly recommend him for consideration for your project."
"Greg is one of the most effective investment bankers that I have had the opportunity to work with. His professionalism, ability to quickly grasp the complexities of our business, expert advice and follow up insured that our process ran smoothly. Even when we hit road blocks during the process, Greg was there to offer alternative suggestions and to work behind the scenes with all parties to get the deal back on track. Greg was a real partner during the entire process from beginning to end and even though we were operating out of different cities, he was always available day or night to discuss and address the issue at hand."
Clean Tech and Energy Services
- Advanced Materials
- Energy Management
- Pollution Control
- Alternative / Renewable Energy
- Resource Management
The Clean Tech and Energy Services sector continues to be a fast growing and dynamic market fueled by strong economic, regulatory, and technical drivers. The primary drivers of buyer, seller, and private investor activity in this sector, include:
- Global government-level commitments to stable, long-term regulatory structures and subsidy frameworks that de-risk certain technologies and associated services
- Renewable portfolio standards and pollution caps that stabilize and create new target markets
- Consolidation as small companies merge to remain competitive, established players look to sustain or increase market share, and large companies outside the sector, such as utilities, look to enter the market
- Technical developments that reduce costs and de-risk technologies relative to peers
- Emergence of new clean energy markets around the globe motivated by economic development, job creation, and/or energy diversification
Transaction volume in the Clean Tech & Energy Services sector slipped some in Q4 2008 and Q1 2009, but rebounded nicely the remainder of 2009 and was steady throughout 2010 and all of 2011 as consumers and politicians continue to focus on creating solutions for future energy demands.
In terms of valuations, quarterly average enterprise value / revenue multiples have ranged from 1.3x to 2.2x since the beginning of 2008, with the average revenue multiple in the sector for Q4 2011 being toward the bottom of that range at 1.4x. Average enterprise value / EBITDA (earnings before interest, taxes, depreciation and amortization) multiples for this same period ranged from 5.4x to 10.9x, and the average EBITDA multiple in the sector for the most recent quarter was 8.0x.
The outlook for the Clean Tech and Energy Services sector is highly favorable. Well-capitalized, acquisitive companies in the sector should continue to benefit from competitive valuations and distressed situations. In addition, significant interest in the sector from private capital managers as well as expectations for synergies through consolidation should benefit companies with interest in sales or divestitures.